West Virginia imposes the first state sales tax, May 3, 1921

On this day in 1921, West Virginia became the first state to enact a sales tax. The levy went into effect on July 1 of that year and currently stands at 6 percent. Food items are taxed at 2 percent. Prescription drugs aren’t subject to sales tax.

Currently, 45 of the 50 states, as well as the District of Columbia and Guam, have followed West Virginia’s move and imposed levies on the sale or lease of most goods, including some services. These taxes vary by jurisdiction, ranging from less than 1 percent to more than 10 percent. Some states also allow local governments to collect sales taxes.

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A 1992 Supreme Court decision, which Congress has the power to overturn, bars states from requiring out-of-state sellers to charge customers a sales tax unless the seller has a significant physical presence in the state.

In 2011, Sens. Dick Durbin (D-Ill.), Mike Enzi (R-Wyo.) and Lamar Alexander (R-Tenn.) introduced a bill that would allow states to collect sales taxes on Internet purchases. The bill enjoys backing from “big box” retailers such as Wal-Mart and Home Depot. Amazon, which recently cut a sales tax deal with Texas, is supportive, while eBay opposes the bill. Under the legislation, states would have to simplify their collection processes to collect taxes from online retailers.

West Virginia is one of 24 states, as well as the District of Columbia, that have enacted legislation that conforms to a uniform Streamlined Sales and Use Tax Agreement. The Streamlined Sales Tax Governing Board is setting up a system under which Internet e-commerce companies can voluntarily pay taxes to states in which their customers reside. An incentive: Firms can turn to one of six established Certified Service Providers to figure out how much they owe each state or locality.